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New agency leads renewable investment

STEPHEN LONG: As we heard in Alexandra Kirk's report, a new independent body will manage the Government's renewable energy funding. The Australian Renewable Energy Agency will pool together existing programs, with an extra billion dollars in funding.

Greens Senator Christine Milne says its independence will mean an end to political interference. The renewable energy sector says the move is long overdue.

Bronwyn Herbert.

BRONWYN HERBERT: It's a rare day in politics when a multibillion dollar fund is announced and there's not a Minister there to spruik it. Instead, it was the deputy Greens Leader, Christine Milne, who unveiled the Federal Government's new agency to manage clean energy projects.

CHRISTINE MILNE: The Australian Renewable Agency will be a statutory authority, it will be arms' length from Government, and it will manage $3.2 billion worth of funding. This consists of $1.5 billion of already-committed funding from a range of up to 10 different programs in the Government, it will also manage $1.7 billion of uncommitted funding.

BRONWYN HERBERT: Christine Milne defended taking the lead on the announcement. She says as a member of the multi-party climate change committee she's fought to secure a package of changes, including this one. The Senator says the agency's independence means an end to politicians interfering with renewable energy funding.

CHRISTINE MILNE: I'm not going to name any ministers who've been involved in interference, but just the example during the election campaign of money being taken out of a solar program to finance Cash For Clunkers, then money being taken out, or proposed to be taken out of solar flagships to fund the flood levy. We have had cabinet decisions to end the rebates on solar at various times, earlier than had been anticipated.

So there has been many, many examples of political interference, either at cabinet or ministerial level, to switch money around, to change the rules.

BRONWYN HERBERT: Not surprisingly the announcement has been endorsed by the renewable energy sector. Kane Thornton is the director of strategy at the Clean Energy Council.

KANE THORNTON: We think it has the potential to really turbo-charge the development of renewable energy in the coming years.

BRONWYN HERBERT: He says the agency's independence is an asset.

KANE THORNTON: There's certainly been some challenges in policy stability for the renewable energy industry, and we welcome this announcement as a way to separate funding and the programs from potential interference from the sort of regular political cycles.

BRONWYN HERBERT: Does setting up another agency really mean it's taking the politics out of it, or is adding another layer of bureaucracy?

KANE THORNTON: Yes, setting up this agency, we believe will take the politics out of funding for clean energy. It'll actually inherit the range of programs that are already in place and provide a greater focus for the funding and program support for renewable energy.

BRONWYN HERBERT: Today's renewable energy announcement comes as an international report delivered its analysis of global investment in clean energy. The Global Trends report found investment last year totalled almost $200 billion. That's up a third in two years.

But economist, Shane Oliver, from AMP Capital Investors, told The World Today, that Australia is lagging behind the rest of the world.

SHANE OLIVER: The unfortunate reality is that because Australia has delayed investment over the years in alternative energy sources such as solar and wind, other countries have the advantage.

So yes it's kept our energy prices artificially lower over the recent years, but the reality is that we have been left behind to some degree.

BRONWYN HERBERT: Kane Thornton from the Clean Energy Council says today's announcement is a good start.

KANE THORNTON: We're hopeful that this agency can use that funding to leverage a much greater amount of private investment into renewable energy. We're also hopeful that the announcement on Sunday of further detail from, in relation to carbon pricing will be an opportunity for Government to make a greater commitment of funding towards renewable energy through this agency as well.

BRONWYN HERBERT: The Greens Senator, Christine Milne, couldn't guarantee that the agency would result in Australia reaching its emissions target of 5 per cent by 2020. But she says it will mean there's stability for the sector.